Mr. Smythe places 10,000 in a savings account that earns 6 percent simple annual interest. At the end of the year, he withdraws the interest that has accumulated during the year, and places it in a seperate account that earns 10 percent simple annual interest. What is in the account(s) at the end of the second year?
(1) How can there be any in the first account if he withdraws it from the first?
(2) the problem says nowhere to add back the 10,000.
there's NOTHING questionable here: simple and clear as 1+1=2
your question (1): he withdraws the interest ONLY
your question (2): the 10,000 STAYS in first account
10000 * .06 = 600 = interest during the year
10000 * .06 = 600 + 10000 = 10600 : amount in 1st account
600 * .10 = 60 + 600 = 660 : amount in 2nd account
If he withdraws the interest he earned during the first year, how can it stay in the first account, i.e.- 10,600?
This is Kap's problem; I doubt it ETS words it in this style.
Ride em cowboy